The Legal Construction Of Early Intervention System Of Problem Banks In China

At present,China's financial industry is developing rapidly,at the same time,it also makes the control of systemic risk in China face great challenges.Practice shows that most of the banking crisis is caused by the deterioration of small problems,therefore the problems of banks must be corrected in a timely manner.The regulatory concept of the Early Intervention System,which focuses on prior prevention and timely intervention,fits this regulatory need,so the establishment of the Early Intervention System has become an international consensus.However,the legal framework of the Early Intervention System of China's problem banks needs to be perfected urgently.On the one hand,there are still many gaps in China's Early Intervention System,on the other hand,the Early Intervention System faces obstacles in practice and has little effect.Therefore,the design of the Early Intervention System in our country should be based on the national conditions and give a strong response to the obstacles in reality in order to guarantee the effective implementation of the system.The first chapter of this paper sets out the rationale for early intervention in the issue of banks and the efforts made by States and international organizations to improve the system of early intervention.The second chapter points out that regulatory forbearance is the main obstacle to the effective implementation of Early Intervention System,and analyzes the causes and harms of regulatory forbearance.The third chapter demonstrates that the Early Intervention System in China should adopt the rules-based model in order to curb the effect of regulatory tolerance.First of all,the trigger of the Early Intervention System must be clear,should be both quantitative and qualitative standards,with qualitative standards as a.supplement to the quantitative standard;Secondly,China should learn from the PCA model to ensure the mandatory and timeliness of the Early Intervention System,while retaining a moderate amount of discretionary space through the setting of qualitative standards and discretionary measures.The fourth chapter deals with other problems of the legal construction of the Early Intervention System.First,perfecting the prerequisites for the effective implementation of the early intervention system;second,we should grasp the balance between macroscopic prudential supervision and micro-prudential supervision and the balance of early intervention right and the management autonomy of commercial banks;third,the system design should consider the particularity of systemically importance banks;It is suggested to integrate the Early Intervention System and the Recovery and Resolution System of commercial banks.